May has been able to accumulate $10,000 in savings from her end-of-month salary and is seeking to invest this amount plus the regular monthly salary savings of $400 into a suitable investment. Given her risk profile, the People's Preference Credit Union has been selected as the best financial intermediary to place her funds. The credit union has offered her a high-interest savings account with an interest rate of 8% compounded monthly for the next 4 years for the investment of May's accumulated and ongoing savings.

a)What effective interest rate will May be earning on her funds?

b)What is the expected balance of the high-interest savings account at the end of the 4-year term?